The affect of COVID-19 on international
trade can be summarized under following points:
- International trade will fall between 13% to 32% in the year
2020.
- The exports from Asia and North America are hit hardest.
- The services trade is worst hit.
- The tourism industry has seen a nose dive.
- Supply chain are also affected.
- Recovery in trade is expected in 2021.
Explanation:
The international trade is severely hit
due to COVID-19 and the global economy is facing unexpected
challenges. The entire world is facing a tough time - both socially
and economically. The affect of COVID-19 on international trade can
be summarized under following points:
- WTO has predicted that the international trade will fall
between 13% to 32% in the year 2020.
- The exports from Asia and North America are hit hardest and are
facing a double digit decline.
- The services trade is worst hit with a decline in the transport
and travel requirements.
- The tourism industry has seen a nose dive specially in Pan
American countries. Tourism is the main source of GDP in these
countries which has shown a sharp decline.
- Supply chain are also affected as they need additional health
an safety precautions.
- Recovery in trade is expected in 2021, but it will depend on
the outbreak duration and the policies that will be
formulated.